OTTAWA — A new tax on yachts, luxury cars and private aircraft designed to hit the super-rich could also cover vehicles meant to help the environment, a tax expert warns.The federal tax will also cover yachts and boats — including motorboats — worth more than $250,000.
Gagné said when the luxury tax was introduced the Department of Finance said "that those who can afford to buy luxury goods can afford to pay a bit more." She said the threshold for the tax for boats was deliberately set at $250,000 so it would cover superyachts and not middle-class families buying boats.
The tax was originally proposed in the 2021 budget. It will cover luxury cars, planes, and boats bought for personal use and leisure. Commercial vehicles, including small planes selling seats, and emergency vehicles are among the classes of vehicle exempt from the new tax.